Stock Market News for November 18, 2010 - Market News

Stocks closed mixed on Wednesday amid lingering concerns about debt problems in Europe and a sharp drop in construction of new homes in the U.S. Financials were the weak spot in yesterday’s trading but strength in retailers’ shares helped contain the losses.

The blue-chip Dow average closed with a drop of nearly 16 points, its fourth drop in five sessions, but managed to close above the 11,000 level. The S&P, after declining for four consecutive days, edged up less than a point, to 1178.59. The tech-heavy Nasdaq Composite index rose slightly more than 6 points, or 0.3%, to 2476.01. On the New York Stock Exchange, two stocks rose in price for everyone that advanced. The CBOE Vix, market’s gauge of volatility, fell 3.6% but was still above 20.

Financials weakened after reports surfaced that the Federal Reserve would conduct a second round of “stress tests” on 19 large banks that were subjected to the tests when the financial crisis was at its peak. The banks that underwent the stress tests include, Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC).

Shares in Bank of America (NYSE:BAC) fell 2.7% to $11.62. JP Morgan Chase (NYSE:JPM) fell 1.1% to $39.18 and Wells Fargo (NYSE:WFC) dropped 1.2% to $26.86.

Retailers, however, showed strength yesterday. Shares in Kohl’s Corp. (NYSE:KSS) jumped 4.2% to $52.80 and Target (NYSE:TGT) added 3.9% to $55.62. BJ’s Wholesale Club (NYSE:BJ) rose 3% to $37.54. Shares in Coach Inc. (NYSE:COH) added 3.3% $52.52.

Improved prospects for China demand have sent copper prices, an industrial bellwether of growth, up 2.1% this morning. However, oil prices fell yesterday to their lowest since October 19, down $1.90, or 2.3%, to $80.44, despite news that US weekly inventory figures showed a 7.3 million barrel drop in crude stockpiles for the week ended November 12. This morning oil prices are trading up 1.9% to $81.98. Gold prices also are up, trading 1.7% higher in early trade.

Yesterday, S&P500 industry sectors consumer service (+0.6%), oil and gas (+0.5%) and consumer goods (+0.3%) showed gains on the day. Financials (-0.4%) ended up on the losing side.

Shares in Qualcomm (NASDAQ:QCOM) jumped 3.5% yesterday after the management told a group of analysts that its chip inventory levels had dropped below the usual level, and that it sees double-digit sales and earnings growth over the next five years.

Companies reporting their numbers include Dell (NASDAQ:DELL), GameStop (NYSE:GME), Gap (NYSE:GPS), Sears (NASDAQ:SHLD), and Staples (NASDAQ:SPLS).

Stock Market News for November 18, 2010 – Market News

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